Our procurement is in line with our procurement strategies, including "intensive production" and "local production for local consumption."
We use a global IT-based procurement system that ensures optimized procurement through the review of costs and supply regions.
The SCM System that enables us to share information on orders, designs, environmental issues and CSR activities with more than 1,200 suppliers in Japan and abroad has been developed.
Help understand and share information on production, environment and CSR
The Ricoh Group has built a system to communicate information on production and environmental impact caused by raw materials and parts on "RaVenderNET," a network infrastructure jointly operated with suppliers. This system, which has been operating since 2001, was expanded in 2005 to include overseas suppliers. As a result, the time required for communicating information on orders was reduced from 2-3 days to half a day and production lead times have thereby been shortened. This system has also been used to share information on CSR procurement since 2010.
Promotion of efforts to address child labor issues
Child labor is one of the priority issues of the Ricoh Group's TRM (total risk management) efforts, and relevant departments have been engaged in various projects to address child labor issues. The Ricoh Group has already surveyed the compliance with laws that prohibit child labor by manufacturing sites in Japan and abroad. The survey results have confirmed that there have been no violations. The self-assessment results from supplier companies have also confirmed that there have been no reports of child labor violations. We will continue to monitor child labor.
Supplier CSR Self-Assessment System
The Ricoh Group Supplier Code of Conduct contains CSR-related standards, including environmental conservation and regulations regarding human rights such as the prohibition of child labor. We request suppliers to comply with these standards in their business activities. We have developed the Supplier Code of Conduct Guidebook and distributed it to suppliers to help them better understand the necessity of compliance with the Code of Conduct. In 2009, we held an explanatory meeting on the Ricoh Group's CSR activities, inviting all major suppliers in Japan to attend, with the aim of raising their awareness of the importance of making efforts in the CSR area and improving their understanding of the Code of Conduct in order to share our values.
Also in 2009, a CSR Self-Assessment System for monitoring the level of compliance with the Supplier Code of Conduct was introduced. Implementation of the system was initiated in Japan and has gradually been expanded to other countries. Based on assessment results reported to the Ricoh Group, activities needing to be improved are identified, results are fed back to the suppliers and advice and support necessary to further improve their activities are provided. The CSR Self-Assessment System has been applied to local suppliers in China since 2010 and is planned to be introduced to Thailand in 2013. The system helps suppliers to implement the PDCA cycle by themselves, and this will eventually enable them to meet society's needs and requests.
Application of the self-assessment system to Chinese legal systems and circumstances to be taken into consideration
An explanatory meeting to improve suppliers' understanding of the Ricoh Group Supplier Code of Conduct and to seek their cooperation in self-assessment and other CSR activities was held in China in 2010, with invitations sent to 50 suppliers at five major production sites. Although issues related to excessive working hours and intellectual property rights have been reported sporadically in China, the country lags behind in fostering people's awareness of the development of legal systems and compliance with laws and regulations. Since we were concerned that due to the circumstances described above, merely translating the guidebooks into Chinese would fail to convey the true intended meaning, we prepared guidebooks exclusively for Chinese companies. Regarding actual implementation of the guidebooks in China, some items are difficult for Chinese companies to interpret correctly. However, the Ricoh Group has been working together with Chinese companies to aid them in establishing both environmental management systems and chemical substance management systems, and based on this experience, they have been actively introducing such self-assessment systems. Our goal is to grow together with our suppliers, placing emphasis on establishing and maintaining trusting relationships with them.